WHAT IS FF&E AND FF&E PROCUREMENT?

FF&E, or FFE, is an acronym that stands for Furniture, Fixtures and Equipment and is used to classify furnishings in hotels, restaurants, multifamily and senior living communities that are specified by interior designers and globally sourced by hospitality FF&E procurement consultants.

FF&E EXPLAINED

What is the definition of FF&E? We demystify the complex practice of pricing, acquiring, shipping, storing, and installing FF&E for hotels, resorts, restaurants, multifamily, and senior living communities.

What is OFCI vs. OFOI FF&E?

FF&E is typically classified into two categories, Owner-Furnished-Contractor Installed (OFCI) and Owner-Furnished-Owner-Installed (OFOI) FF&E. Owner-furnished contractor-installed (OFCI) FF&E scope includes items that are supplied to the General Contractor by the FF&E purchasing agent such as wallcovering, carpet, carpet pad, hardwired decorative lighting, and lighted mirrors and installed by specialized trades such as carpet installers, wallcovering installers, and electricians.  In the majority of instances, the General Contractor is not obligated to deliver FF&E as part of their contract. As an alternative, items are purchased by an FF&E procurement consultant and distributed to other project consultants on the behalf of the Owner.

Owner-furnished Owner-installed (OFOI) FF&E scope includes wood and metal furniture, upholstered seating, fabrics and leathers, window treatments, decorative pillows, portable decorative lighting, light bulbs, area rugs, artwork, framed mirrors, planters and pots, loose decorative accessories, and outdoor furniture.  For example, if you were to take a finished hotel room, pick it up, remove the roof, and flip it over, the elements that have no permanent connection to the structure of the building and would "fall out" are considered OFOI FF&E items.

Up to 75% of the interior furnishings in a hotel environment are fully-custom and made to order specifically for that individual property.

What is FF&E PROCUREMENT?

Regardless of the type of FF&E that is included in a project, all of the components of FF&E need to be meticulously documented from the time that they are selected, through the manufacturing and logistics process, and on to the point where they are installed in the building. The complex practice of pricing, acquiring, shipping, storing, and installing FF&E for hotels, resorts, restaurants, multifamily, and senior living complexes is referred to as "FF&E procurement." This multifaceted process involves a number of steps.

The process also requires a great deal of time, energy, and intellectual capital. It is necessary to weigh the costs and benefits of each FF&E option. Final selections have to be approved, and the procurement, delivery, and installation processes have to be closely monitored and meticulously documented. The right hospitality procurement agent is essential for a successful project from a cost and schedule standpoint.

WhEN SHOULD an ff&e purchasing consultant be engaged?

The vast majority of hoteliers, project management teams, and/or operators will advise their clients to hire an FF&E procurement company before the completion of the interior design process, if not before. Canoe Hospitality routinely collaborates with owners and interior designers to produce project budgets and forecasts at the same time that design decisions are being made. This helps to guarantee that the project budget will be in line with the owner's bottom line from the very beginning of the process. In the event that value engineering or cost savings need to be found, it is recommended that these activities be carried out during the initial design phase rather than during the purchase phase. This will allow FF&E deliveries to remain on-schedule.

It is essential that products be delivered at the location at the appropriate time. Any delays will result in a costly domino effect and loss of revenue, but purchasing too early could mean having to pay for additional months of storage space or leaving one-of-a-kind furniture, fixtures, and equipment on-site, where the risk of damage or loss it is high. The project’s interior designer will be heavily involved in the process regardless of who is managing the FF&E procurement, scheduling of FF&E arrivals, and installation of the finished product as the purchasing agent will also work with the designer to propose alternates due to discontinuations, budget, schedule, or design intent changes.

A organization with considerable commercial furniture, fixtures, and equipment (FF&E) procurement experience, with a focus on the hospitality hotel industry, is required to bring a complex design concept to reality. Our experienced group of project managers are able to provide our clients individualized procurement solutions that exceed cost expectations, timeliness, and quality by utilizing established supplier relationships, extensive industry expertise, and intellectual capital. Canoe is widely regarded as one of the most successful purchasing groups within the hospitality sector in part because of our exceptional capacity to recognize both risks and opportunities to the benefit of our clients.

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